Financing an investment property with very little money.

[Abraham Bakre]

I attended a seminar today at my local REIA and the guest speaker told us about how he financed a property with very little money.

Rough numbers on a SF

ARV - 102K
Purchase Price - 46K
75% of ARV Hard Money loan - 76K
Total Expenses - 19K

Before Refi total:

76K
-46K
-19K
= 11K in leftovers

After refi (estimating Hard Money Interest Rate of 15%)

102K
-87.4K (hard money payoff total w/15% estimate)
+11K (leftover money before refi)

Total money leftover to make more deals: $25,600

Very little money he had to come up with out of pocket:

$1,000 in earnest money
$500 in an appraisal
$350 for an inspection

Total = $1,850 invested out of pocket

He stated that he "obtained a hard money loan from the lender for 75% of the ARV and the lender also refinanced the home at the ARV of 102K so that he could pay back the hard money loan and take advantage of the equity capture.

Please advise on the feasability of this deal? Did I break the numbers down properly? Please offer any critic and advise deemed helpful!

Thanks BP!